ESG: Finding Its Way Into The Hearts And Minds Of Financial Advisors - According To The Latest Aite Group Report, Extensive And Deep Industry Forces Are At Play And Driving Interest In ESG Investment.

Though industry surveys and statistics forecast a rosy outlook for environment, social, and governance (ESG) investing within wealth management, client-facing financial advisors are not quite as enthusiastic. Nevertheless, wealth managers are pivoting their business models and technology platforms toward this segment and impressing upon their client-facing financial advisors that the younger generations of financial advisors and clients have a tangible desire to engage and invest in line with their beliefs. A new Aite Group report, ESG: Finding Its Way Into the Hearts and Minds of Financial Advisors, profiles the innovation efforts and initiatives of 11 ESG-focused practitioners across the U.S. 

“Wealth managers are executing new business models and deploying innovative technology platforms that incorporate sustainability into their businesses and client investment portfolios, and the more advanced ones are articulating and reporting the impact of their investments on global issues like climate change and inequality to their clients,” explains Wally Okby, senior analyst at Aite Group. “Along with market-rate investment performance, these impact metrics are well received by clients and, in our view, will spur increased interest among individuals who aspire to influence positive change via their investments,” he adds. 

This report shares data and insights on investment decisions, impact areas of focus, return expectations, challenges, trends, and of course, opportunities in this rapidly evolving space. It is based on Aite Group’s in-depth interviews with chief executive officers or executive managers of 11 firms in the United States and profiles the following firms: Calvert Research and Management, Calvert Impact Capital, CNote, First Affirmative Financial Network, Gitterman Wealth Management, Incapital, Matthews Asia, MCE Social Capital, Morgan Stanley, Parnassus Investments, and Social Finance.